What do you do with your house while you travel?

NedRN · Jul 27, 2017

You can have family, friends, or a property manager check on it.

Even better in my opinion is to buy a house suitable for a house share in a desirable location like a gentrifying or university neighborhood (grad students make great roommates). This preserves your tax home and is a great deal for both parties. You have someone there to take care of the property or at least inform you about issues, check your mail, and provide a nice offset against your mortgage (or additional revenue). The housemate gets privacy for most of the year for a lower price - you might even be able to charge over regular house share prices for such a deal, but go for the better tenant.

A house in the neighborhoods I suggested will probably be more than you were planning to spend, but properties in such neighborhoods are more likely to appreciate than other neighborhoods and you will have a better selection of housemates that will pay more.

If you go for such a deal, see if you can get referrals to a few choice trades persons such as a plumber, an electrician, appliance repair, and someone who can take down a damaged one in your absence. Establish a relationship with each.

OncRN4eva · Aug 2, 2017

Thank you very much for your suggestions!

jive turkey · Aug 7, 2017

You can have family, friends, or a property manager check on it.
Even better in my opinion is to buy a house suitable for a house share in a desirable location like a gentrifying or university neighborhood (grad students make great roommates). This preserves your tax home and is a great deal for both parties. You have someone there to take care of the property or at least inform you about issues, check your mail, and provide a nice offset against your mortgage (or additional revenue). The housemate gets privacy for most of the year for a lower price - you might even be able to charge over regular house share prices for such a deal, but go for the better tenant.
A house in the neighborhoods I suggested will probably be more than you were planning to spend, but properties in such neighborhoods are more likely to appreciate than other neighborhoods and you will have a better selection of housemates that will pay more.
If you go for such a deal, see if you can get referrals to a few choice trades persons such as a plumber, an electrician, appliance repair, and someone who can take down a damaged one in your absence. Establish a relationship with each.

This is good advice however I would caution you about how you sublet. Make sure you're not leasing to somebody otherwise you run the risk of being a landlord (If you use a property manager as suggested, your home will be recorded as a rental property). If you are a landlord, the money the tenant pays you could be considered taxable income for one. Second if you are the landlord you might run the risk of that address not qualifying to be your "tax home" which is VERY important to benefit from travel pay. (consult a tax preparer/accountant for greater accuracy). I am currently in both situations I just described.

I own a house in Phoenix, but it is fully rented to someone. I don't use that address, and the rent they pay me is considered taxable income etc. but there's other benefits to this beyond the scope of your question.

I own a condo and that IS my home address. I have a relative that sold her home and now stays in the extra room. I still have belongings there, pay the mortgage, utilities in my name, I return there, and it is therefore my "tax home". She is essentially a room mate that pays rent which offsets the cost and provides the benefit of having someone to look after the place.

This is where I second what NedRN says. Select a property based less on your personal preferences. (This may make the rural home less of a candidate). Select one that will be easy for you to get DESIREABLE and reliable roommates that can stay there to look after it, offset your expenses with their contribution, yet still preserves your tax home qualification.

NedRN · Aug 7, 2017

Just to be clear, I was not recommending a property manager, I only mentioned it as one option among several. Paying someone to look after your home while you are away without a tenant will not change your tax home status. Or course any revenue received from a housemate will be taxiable. It may be able to be used to offset mortgage interest though (reducing your interest deduction but that is trivial compared to reducing income tax).

jive turkey · Aug 7, 2017

Just to be clear, I was not recommending a property manager, I only mentioned it as one option among several. Paying someone to look after your home while you are away without a tenant will not change your tax home status. Or course any revenue received from a housemate will be taxiable. It may be able to be used to offset mortgage interest though (reducing your interest deduction but that is trivial compared to reducing income tax).

I hear you Ned, and good point. I would hate for the OP to approach a property manager and sign up for actual property management services if it doesn't help them meet their goal. As for rent from a room mate being taxable, that's an interesting element that I've just recently discussed with my friend who is a tax preparer. I've discovered there's several variables in that regard but even as taxable income there's ways to reduce the tax paid. I assume we agree the benefits of a paying room mate in a primary residence while traveling outweigh tax implications.

OncRN I'm curious as to what motivates you to travel, is it for pleasure or the income? Both? If both which is more important? And what motivates you to purchase a home you won't occupy for some time?